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Annex FourGlossary of TermsOfficial Development Assistance (ODA) Grants or Loans to countries and territories on Part I of the DAC List of Aid Recipients (developing countries) which are: (a) undertaken by the official sector; (b) with promotion of economic development and welfare as the main objective; (c) at concessional financial terms [if a loan, having a Grant Element of at least 25 per cent (calculated at a rate of discount of 10 per cent)]. In addition to financial flows, Technical Co-operation is included in aid. Grants, Loans and credits for military purposes are excluded.
Development Partner / Donor Development Partner / Donor is the funding agency or country making a financial commitment to the project from its core funds. Agencies who receive funds from others as part of a co- funded project are not donors (or are donors only for that portion of funding that they have contributed from their own core funds). Donors can be multilateral, bilateral and/or NGOs.
Lead Development Partner It exists in co-funding project which requires intra-coordination among development partners to select a lead actor to stand for all coordination work and to provide project information to CRDB/CDC.
Point of Delivery Point of Delivery is a partner who makes the final disbursement to the national partner. Usually in co- funding project, lead development is the point of delivery.
Co-Funded Project Co-Funded Project is a joint project funded by more than one donor whom has common objectives. For example, PfDR project is funded by UNDP, EU and SIDA.
Pledge The grant or loan resources indicated in a non-binding (often verbal) manner by a donor over one year or a fixed number of years. Often these sums are not associated with any particular project, which must be designed at a later time. A pledge is not equivalent to a commitment and is treated as purely indicative.
Commitment A firm written agreement by the donor to provide funds for a particular project or to a Trust Fund. The Commitment Date is the date of that written agreement. Commitments are usually multi-year - i.e., they are designed to fund expenditures for several years - but the total commitment is recorded in the year that the agreement is signed (even though disbursements may be projected to take place over a longer period).
Disbursement Disbursement is the release of funds to, or the purchase of goods or services for, a recipient; by extension, the amount thus spent. Disbursements record the actual international transfer of financial resources, or of goods or services valued at the cost of the donor. The Disbursement Date is the date at which those funds were made available – usually this involves the transfer of funds into the implementer’s bank account or the draw down by the implementer of funds held in an account by the donor.
Grant Transfers made in cash, goods or services for which no repayment is required
Grant Element Grant Element reflects the financial terms of a commitment: interest rate, maturity, and grace period (interval to first repayment of capital). It measures the concessionality of a loan, in the form of the present value of an interest rate below the market rate over the life of a loan. Conventionally the market rate is taken as 10 per cent in DAC statistics. Thus, the grant element is nil for a loan carrying an interest rate of 10 percent; it is 100 per cent for a grant; and it lies between these two limits for a soft loan. If the face value of a loan is multiplied by its grant element, the result is referred to as the grant equivalent of that loan.
Loans (Credits) Loans are the provision of resources, excluding food or other bulk commodities, for relief or development purposes, including import procurement programmes, which must be repaid according to conditions established at the time of the loan agreement or as subsequently agreed.
Concessional Loan Concessional Loan is the provision of funds by a donor as a loan which consists of a minimum 25 percent grant element, thus qualifying it as an ODA transaction. It is also commonly referred to as a “soft” loan.
Mixed Credit Refer to a project that is funded with Loan and Grant elements.
Project/program budget The total resources required from all sources to implement the project/program.
Project/program start date The actual start date of the implementation of the project/program. Often the same as the project signature/commitment date.
Project/program completion date Actual, if already completed, or planned completion date of the project/program.
Project/Program Status On-going -the project document is signed and the project is operationally open.
Completed - the project is operationally closed (financial closure is not necessary)
Suspended - the activities of the project have been officially suspended at the request of one of the signatory parties.
Pipeline - donor is identified and a concept paper or project document is being/has been drafted, with funding identified (but not committed).
Budget Strategic Plan Budget Strategic Plan is a medium-term (3 years) rolling budget plan. It provides a basis for program budgeting and is also an instrument for integration of the recurrent and capital budget for both the State's and development partners' budget, which is the goal of the PFM.
Sector Sectoral classifications organize projects according to their spheres of societal endeavor. For example, "productive" sectors create economic value by generating and distributing goods and services. "Infrastructure" sectors provide the basic installations and facilities on which communities depend. "Social" sectors provide for the mental, physical, and spiritual well-being of individuals and their communities. "Environmental" sectors sustain the earth's physical and biological assets. "Governance" sectors guide and administer the affairs of a state, community, organization or association. Sectoral classifications help provide the social and economic benchmarks used to measure a programme or project's impact.
Thematic Marker Thematic Marker is to indicate projects that have been associated with the principal sectors, meaning that a project makes some form of contribution to a development objective even though it is not directly working in that sector or on that cross-cutting issue. A contribution can also sometimes be of a non-financial nature. For gender equality, for example, it is well understood that best practice involves mainstreaming gender equity objectives in projects.
Types of ODA Technical Cooperation Technical Cooperation includes both (a) grants to nationals of aid recipient countries receiving education or training at home or abroad, and (b) payments to consultants, advisers and similar personnel as well as teachers and administrators serving in recipient countries, (including the cost of associated equipment). Assistance of this kind provided specifically to facilitate the implementation of a capital project is included indistinguishably among bilateral project and programme expenditures, and not separately identified as technical co-operation in statistics of aggregate flows.
Free-standing Technical Cooperation Free-standing Technical Cooperation involves the exchange and training of technicians and engineers, the dispatch or invitation of experts and consultants, and the provision of technical services. The provision of resources aimed at the transfer of technical and managerial skills and know-how or of technology for the purpose of building up national capacity to undertake development activities.
Investment-related Technical Cooperation Investment-related Technical Cooperation is often provided in grant and involved not only the technical services included in FSTC projects such as training and consultation, but also the provision of capital elements (i.e. those that are associated with some material/tangible output), including machinery and equipment.
Investment Project/Programme Assistance Investment Project/Programme Assistance is provided, in cash or in kind, for specific capital investment projects, i.e., projects that create productive capital which can generate new goods or services. It is also known as capital assistance.
Budget Support or Balance-of-Payments Support Budget Support or Balance-of-Payments Support is provided in the context of broader development programme and macro-economic objectives and/or which is provided for the specific purpose of supporting the recipient’s balance-of-payments position and making available foreign exchange. This category includes non-food commodity input assistance in kind and financial grants and loans to pay for commodity inputs. It also includes resources ascribed to debt relief.
Food Aid (for Development purposes) Food Aid is provided in food for human consumption for developmental purposes, including grants and loans for the purchase of food.
Emergency and Relief Assistance Emergency and Relief Assistance aims at immediately relieving distress and improving the well- being of populations affected by natural or manmade disasters. Food aid for humanitarian and emergency purposes is included in this category. Emergency and relief assistance is usually not related to national development efforts or to enhancing national capacity but is still included in the definition of ODA.
Development Effectiveness and Busan indicators
Public Sector Public Sector is defined as ministries, departments and agencies that are authorized to receive revenue or to undertake expenditures on behalf of central government. Disbursements to the public sector include the government as above-defined but exclude CSOs, the private sector and other non-state domestic actors.
Government financial management system:
Result Framework Result Framework is the linkage of project objectives/policy to inputs to activities and, ultimately to results (outputs and outcomes) in association with NSDP and sectoral plan/strategy.
3-year forward plan 3-year forward plan (in which year to be determined): start from New Year forward, i.e. 2020-2022 (if current year is 2019). To be in this category the project life period has to be renewed its three- year plan unless the project life is set out for 3 years.
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